Aurivo announces February milk price

Aurivo has become the latest milk processor to announce its price for February supplies. While it has reduced its base price by 1.5c/L, the co-operative has provided a 1.58c/L early calving payment with the February milk price.

The board of Aurivo co-op has today agreed to pay a milk price of 35.58c/L including VAT for February manufacturing milk (33.75c/L excluding VAT).

The February price is made up of a base price of 34c/L and an early calving payment of 1.58c/L including VAT.

The average price paid to Aurivo suppliers in February will be 39.7c/L including VAT (37.66c/L excluding VAT) based on the average co-op solids.

The Aurivo base price adjustment is due to continued weakness in dairy markets, particularly powder prices. Market returns continue to remain significantly behind Aurivo’s current manufacturing milk price, according to a company spokesperson.

Last month Aurivo offered a price of 35.5c/L including VAT for January – this was held for a third consecutive month, though the additional seasonal payment of 1c/L which was in place previously, however, was withdrawn.

Processors

Yesterday, Dairygold announced its intention to reduce the price for milk supplied in February by 2c/L – bringing the price to 34c/L including a 0.5c/L quality bonus and VAT.

This drop follows five consecutive months of Dairygold holding its previous price of 36c/L, which also included the 0.5c/L quality bonus.

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On Tuesday, Lakeland Dairies announced that its milk price will be reduced by 1c/L to 34.56c/L (including VAT and lactose bonus) for February.

The reduction in the base milk price “reflects extremely challenging market conditions, including lower returns for powders and butter in recent months”, according to the processor.

The same day, Kerry revealed its decision to introduce a price cut of 2c/L – VAT inclusive – for February supplies, paying farmers a total of 34c/L – bringing to an end five months of holding the previous milk price of 36c/L.

Last month’s price was not supported by actual demand in the marketplace, according to Kerry Group chief executive Edmond Scanlon.

Meanwhile, on Monday, Glanbia Ireland announced its decision to cut its milk price for February supplies and pay its milk suppliers 32c/L including VAT for February manufacturing milk supplies at 3.6% butterfat and 3.3% protein.

This is a reduction of 3c/L from the January price.

The Glanbia February milk payment will also include a payment of 1c/L “to reflect the particularly challenging weather conditions experienced on Glanbia farms”.